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Dell Looks for More Cuts

By Ashlee Vance November 4, 2008 7:08 pmNovember 4, 2008 7:08 pm

Dell has started to batten down the hatches as it tries to deal with a deflated global economy.

Michael Dell, the founder and chief executive of the computer company, detailed a number of cost-cutting moves on an internal company blog this week. Most notably, Dell has instituted a global hiring freeze and will accommodate those willing to leave the company in exchange for an “enhanced separation package,” said David Frink, a Dell spokesman. Employees are also being encouraged to take between one and five days of unpaid leave.

“We are taking actions in our fourth quarter to reduce costs and better position Dell for long-term competitiveness during this time of economic uncertainty,” Mr. Frink said.

Dell declined to release the text of Mr. Dell’s missive, which was first reported by the Austin American Statesman.

Along with the personnel matters, Dell has curtailed some projects and “reprioritized” capital spending, while it also cuts back on services provided by third parties.

These moves follow a warning put out by Dell in September that some organizations had started to curtail their technology spending, which was hurting sales.

Dell is scheduled to report third quarter financial results on Nov. 20.

In related news, Mr. Dell pushed the idea that software developers could eventually boost the economy by concocting new applications and more demand for hardware.

Speaking at a conference in San Francisco put on by online business software provider Salesforce.com, he said, “This guy Joe The Plumber has been getting a lot of excitement and attention,” Mr. Dell said, according to technology site The Register. “I wonder: where’s Joe The Programmer? I think we can code our way out of this crisis – Code, Baby, code!”

I tried to buy some equipment (small business) on a promo, but the checkout corrupted the order– Dell did not bother to tell me this though. By the time I found out, the promo was over, they were not interested in the sale. No wonder they are slipping, they must have layed off the programmers that test the checkout! Code baby code, but not for Dell I guess.

Bought off lease from a competitor and saved money on the PCs (stayed with older Dell flats already in use instead of upgrading). If I had more cash, I’d short Dell, throwing away sales is not a good business practice.

In ASIA Dell spends in excess of 35M / year just to house and school Dell expat families. Let us save here by turning them to local package or hire local staff. Dell is the only PC company with such high concentration of EXPATS in ASIA.

There is no focus on hiring, retaining and growing local talent. The President or VP of HR will not tell Austin this they are in Asia to enjoy the good life and get BIG bonuses. The record on marketshare growth is not stellar with a hit and miss every alternate QTR a local with 1/2 the salary could do better.